Q: When considering a privately held company to invest in, what if any aspects of your investment approach change compared to investing in a publicly traded company?
A: It’s pretty much the same, the only difference is having an idea when that investment will turn into an exit.
Q: How do you find out about privately held companies to consider an investment in?
A: Invest in what you know! A good example is Chipotle. When I was in college they had less than 20 stores and I ate there every other day. When I heard it was going public I had no money or even an account to buy it in, but I told my sister to buy some and she still has it to this day. Same with weed products, apps or media. If you use it, know it works and would recommend it to someone else that’s a good tell to start.
Q: What would say is the biggest benefit or unique aspect of investing in a privately held company versus a publicly traded company?
A: Biggest difference for a public company is being provided with a sure way to exit when you’re ready. The biggest advantage of investing in a private company early is the ROI you can see upon execution of the model. Early investors are always the first to be rewarded with the biggest ROI.
To read more on Crowdfunding,
Check out last month's article titled "Crowdfunding in the MJ Sector"
January 2018 CI Mag
113